NEWS
Performance Report: Bennelong Emerging Companies Fund
30 Jul 2019 - Australian Fund Monitors
The Bennelong Emerging Companies Fund rose +3.44% in June, taking performance over the financial year to +15.08% and annualised performance since inception in November 2017 to +26.58%.
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30 Jul 2019 - Performance Report: Bennelong Emerging Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may invest in securities expected to be listed on the ASX within 12 months. The Fund may also invest in securities listed, or expected to be listed, on other exchanged where such securities relate to ASX-listed securities |
| Manager Comments | The Fund returned +16.00% over the June quarter. Assisting performance were strong returns from large positions such as Jump Interactive, Zip Co, EML Payments and Nearmap. Bennelong noted they have since trimmed some of their tech holdings, including some of these names, and have diversified more into other sectors where they are finding opportunities. |
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Performance Report: Touchstone Index Unaware Fund
29 Jul 2019 - Australian Fund Monitors
The Touchstone Index Unaware Fund rose +2.14% in June. Since inception in April 2016, the Fund has returned +11.43% per annum with an annualised volatility of 9.89%.
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29 Jul 2019 - Performance Report: Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | As at the end of June, the Fund held 22 stocks with a median position size of 4.6%. The portfolio's holdings had an average forward year price/earnings of 16.1, forward year EPS growth of 5.1%, forward year tangible ROE of 23.2% and forward year dividend yield of 4.3%. The Fund's cash weighting was decreased to 3.0% from 3.4% as at the end of May. The Fund primarily seeks to select stocks from the ASX300 Index, typically holding between 10-30 stocks. The Fund seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends. |
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Performance Report: DS Capital Growth Fund
26 Jul 2019 - Australian Fund Monitors
The DS Capital Growth Fund rose +0.75% in June, taking performance since inception in January 2013 to +15.26% p.a. with an annualised volatility of 7.26%. By contrast the ASX200 Accumulation Index has returned +10.72% p.a. with an...
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26 Jul 2019 - Performance Report: DS Capital Growth Fund
By: Australian Fund Monitors
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| Fund Overview | The investment team looks for industrial businesses that are simple to understand; they generally avoid large caps, pure mining, biotech and start-ups. They also look for: - Access to management; - Businesses with a competitive edge; - Profitable companies with good margins, organic growth prospects, strong market position and a track record of healthy dividend growth; - Sectors with structural advantage and barriers to entry; - 15% p.a. pre-tax compound return on each holding; and - A history of stable and predictable cash flows that DS Capital can understand and value. |
| Manager Comments | The Fund returned +10.00% after fees over the financial year. In most cases, the Fund's core Australian investments delivered the earnings growth DS Capital were expecting. Top contributors included Lifestyle Communities, CME Group, Credit Corp, AMA, Interxion, MYOB, Zip Co, Collins Foods, Rightmove, Vista Group, Over the Wire, Uniti Wireless, Experience Co, Seven Group Holdings and Premier Asset Management. Key detractors included Challenger and Axesstoday. DS Capital don't expect interest rates to rise significantly in the short term, however, they remain conscious of the stock market's sensitivity to increases in interest rates and the potential for a rotation from equities back to bank deposits and have therefore positioned the portfolio accordingly. They expect the market to remain susceptible to macro-economic issues, particularly the trade relationship between the US and China. |
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Performance Report: Spectrum Strategic Income Fund
25 Jul 2019 - Australian Fund Monitors
The Spectrum Strategic Income Fund returned +0.45% in June, marking 10 years since inception in June 2009. Over that time the Fund has returned +8.01% p.a. with a maximum drawdown of -1.58%.
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25 Jul 2019 - Performance Report: Spectrum Strategic Income Fund
By: Australian Fund Monitors
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| Manager Comments | Spectrum believe the bond market has adopted a 'wait and see' attitude with regards to the prospect of a Fed rate cut. This, they say, explains why bonds are trading in a tight range both domestically and internationally. Spectrum add that markets are reacting to dovish central banks, persistently low inflation, negative interest rates in Europe and the legacy of QE. Their view is that in this environment anything that provides a yield looks attractive and therefore it's these factors which are driving both equity and bond market rallies. Spectrum say the outlook and demand for credit remain resilient, especially so if equity markets continue to rally. They noted it's hard to say what could change this view, however a geopolitical event such as a conflict between the US and Iran could lead to a surge of bond buying. They don't believe this is likely. |
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Performance Report: Quay Global Real Estate Fund
25 Jul 2019 - Australian Fund Monitors
The Quay Global Real Estate Fund returned +0.3% in June, in line with its benchmark (FTSE/EPRA NAREIT Developed Index Net TD AUD). Since inception in January 2016, the Fund has returned +10.36% per annum.
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25 Jul 2019 - Performance Report: Quay Global Real Estate Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged. |
| Manager Comments | For the 12 months to June, the largest positive contributors to returned were Sun Communities (US Manufactured Holdings), Ventas (US Health) and Store Capital (Triple net). The largest detractors were Scentre Group (Aust Retail), Boardwalk REIT (Canada Housing) and RLJ (US Hotels). |
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Fund Review: Insync Global Capital Aware Fund June 2019
25 Jul 2019 - Australian Fund Monitors
Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...
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25 Jul 2019 - Fund Review: Insync Global Capital Aware Fund June 2019
By: Australian Fund Monitors
AFM Fund Review - June 2019 (pdf format)
INSYNC GLOBAL CAPITAL AWARE FUND
Attached is our most recently updated Fund Review on the Insync Global Capital Aware Fund.
We would like to highlight the following:
- The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - June 2019 (pdf format)
Performance Report: Harvest Lane Asset Management Absolute Return Fund
24 Jul 2019 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund has returned +8.40% p.a. with an annualised volatility of 6.97% since inception in July 2013. By contrast, the ASX200 Accumulation Index has returned +10.24% p.a. with an annualised volatility of...
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24 Jul 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | Harvest Lane say June delivered a rather subdued end to the year with the portfolio posting a modest decrease of -1.03%. The strategy continues to deliver on its stated goal of producing positive absolute returns; the portfolio delivered a positive return for its sixth full year in operation and is yet to produce a negative result for any financial year period. They remain optimistic about the future, noting deal flow remains plentiful. Harvest Lane noted there are a lot of green shoots in the portfolio as they enter July, giving them confidence in delivering attractive risk-adjusted returns in the months and years ahead. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
24 Jul 2019 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund rose +3.19% in June, taking annualised performance since inception in February 2009 to +16.17% versus the ASX200 Accumulation Index's +11.04%.
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24 Jul 2019 - Performance Report: Bennelong Concentrated Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks. |
| Manager Comments | Over the June quarter the Fund returned +4.47% versus the Index's +7.97%. Whilst the Fund has outperformed over the long term, Bennelong noted performance over the past year had been disappointing. The largest detractor over the quarter was Reliance Worldwide after the company downgraded its earnings guidance in May, however, Bennelong believe the shares now look well placed for attractive returns over the medium term. Not having any exposure to the strongly performing banks was the next major reason for the Fund's relative underperformance. Bennelong believe earnings headwinds remain for the banking sector; net interest margin remain under pressure, credit growth remains soft, bad debt could trend upward if employment or the general economy start to suffer. The next largest detractors were Corporate Travel Management and Costa Group. The main positive contributor was Aristocrat Leisure after the company reported strong half year results in May. |
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Performance Report: NWQ Fiduciary Fund
23 Jul 2019 - Australian Fund Monitors
The NWQ Fiduciary Fund was flat in June, returning -0.03%. Since inception in May 2013 the Fund has returned +5.05% p.a. with an annualised volatility of 4.82%.
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23 Jul 2019 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | NWQ's view is that equity and bond market pricing reflect two very different outlooks for the global economy; equity investors are looking through falling earnings and expecting the Fed to step in and cut interest rates to justify current multiples, while bond investors see deteriorating economic fundamentals and geopolitical risks as potentially leading to a recession in the near term. NWQ believe we are likely to see higher levels of volatility whilst these conflicting outlooks resolve themselves. In this scenario they consider having a 'market neutral' portfolio of long/short managers a sound way of navigating the potentially challenging times ahead. |
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Performance Report: Insync Global Quality Equity Fund
23 Jul 2019 - Australian Fund Monitors
The Insync Global Quality Equity Fund rose +6.66% in June, outperforming AFM's Global Equity index by +1.36% and taking annualised performance since October 2009 to +13.50% versus the Index's +11.28%.
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23 Jul 2019 - Performance Report: Insync Global Quality Equity Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high-quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are: size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio typically of 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. |
| Manager Comments | Insync attribute the Fund's June performance to strong contributions from stock selection. Positive performers included Booking Holdings, Visa, Zoetis, Facebook and Boston Scientific Corp. Detractors included Ross Stores, London Stock Exchange, PayPal Holdings, Reed Elsevier and Amadeus IT. There continues to be no currency hedging as Insync consider the main risks to the Australian dollar to be on the downside. |
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